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Duns and Bradstreet

⏳ Video Length — 00:04:57

Lesson Summary


Dun & Bradstreet (D&B) use a Paydex score that ranges from 1 to 100—the higher the number, the better shape your business’s credit is in. 

To calculate your business credit score, D&B looks at one specific factor: how timely you are when paying vendors like business loan lenders, suppliers of raw materials, utility companies, insurance companies, leasing companies, and more. To earn the highest score, you must pay your bills before their due dates.

For this reason, paying your debts early, or encouraging your vendors to report a good history of payment can be extremely helpful in raising your credit score.

You can break down the D&B Paydex score into three tiers: scores between 80-100, scores between 50-79, and scores 49 and below. 

The highest range indicates a low risk of payments, with a score close to 100 meaning payments often come promptly or sooner than 30 days within terms. 

On the other hand, a score of 1-19 indicates that the business often takes more than 120 days to make payments.

Almost all Fortune 500 companies and major retailers require an established business file with DnB to do business with them, and are required to bid on government contracts. 

PAYDEX is primarily used by vendors and suppliers to judge your business when determining what terms to extend on trade credit (e.g., net 30, net 60, etc.) Typically, the better the score, the more generous the terms extended. This is important because having more time to pay your bills can help you better manage cash flow.

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